The Kenya Kwanza government’s grand ambitions have been derailed after the High Court declared the Privatisation Act of 2023 null and void. This decision sends shockwaves through the corridors of power, especially as the ruling cites a lack of genuine public input during the law-making process.
High Court Justice Chacha Mwita didn’t mince his words when he struck down the controversial Act, stating that the National Assembly had failed to engage Kenyans effectively. “Six memoranda and a handful of stakeholders couldn’t represent the voices of the people, as required by the Constitution,” he said.
The now-axed law was President William Ruto’s ticket to streamline the sale of public entities, with the Executive having control over which state assets could be sold off. But with this ruling, key institutions like the iconic Kenyatta International Convention Centre (KICC) and several other parastatals have been pulled back from the auction block.
Justice Mwita’s ruling slammed the attempt to privatize KICC, labeling it a violation of the Monument and Heritage Act. “The decision to sell KICC, a National Monument, is unconstitutional and void,” he ruled.
The Act, signed into law almost a year ago, was designed to fast-track the sale of public assets, giving Cabinet Secretaries sweeping powers to initiate privatisation without much oversight from Parliament. The opposition wasn’t having it and challenged the Act in court, citing national security risks tied to the potential sale of vital institutions like Kenya Pipeline Limited, the Kenya Seed Company, and the Kenya Literature Bureau.
Under the now-doomed law, if Parliament didn’t ratify the sale of a parastatal within 90 days, it would have automatically gone ahead. That clause didn’t sit well with the courts either. Justice Mwita deemed it unconstitutional, delivering a major blow to Ruto’s administration.
Several other major state assets, such as the National Oil Corporation of Kenya, Kenya Vehicle Manufacturers Limited, and Mwea and Western Kenya Rice Mills, have now been spared from privatisation.Kenya Pipeline
